A Fraudulent Loan Almost Cost Her Home: NLSLA Continues the Fight
Here is an update on a case we first shared last year: Alma Foster, a 79-year-old African-American woman living on a fixed income, was fraudulently enrolled in the PACE loan program by a roofing contractor who upsold her on additional improvements she never wanted or needed under the guise that it would be subsidized and affordable for her. She never signed the PACE loan contract. She never agreed to its terms. But suddenly, she was on the hook for more than $176,000 for supposed “energy-efficient” upgrades to her roof and walls.
That fraudulent contract created a lien on her home and added nearly $9,000 in annual property taxes, pushing her into default. For years, Alma lived under constant threat of foreclosure, with her home scheduled to be sold multiple times between 2019 and 2020.
In 2019, NLSLA filed a lawsuit against the contractor, the County of Los Angeles, and the County’s PACE administrator, Renovate America Inc. We alleged financial elder abuse, unlawful taxation, and sought relief to void the fraudulent debtAt the same time, we fought to stop the foreclosure. We worked around the clock to delay it during the COVID-19 moratorium and secured funds to keep Alma in her home.
Through loans, grants, and pandemic relief programs, we secured more than $65,000 to reinstate her reverse mortgage. Alma repaid what she could into the PACE loan—even though she never agreed to it in the first place.
Our complaint to the Contractors State License Board led to an investigation that confirmed the contractor didn’t even install eligible PACE products, resulting in $37,000 in restitution paid directly to Alma. Then, just before trial in 2024, we reached a $150,000 settlement with the contractor, plus $65,000 in attorneys’ fees.
In 2023, the court wrongly granted summary judgment for the County of Los Angeles from the case, citing public agency immunity. But we appealed—and earlier this year, the appellate court issued a powerful opinion, finding the PACE contract was forged and that the County was not immune from all of Alma’s claims, including claims for tort damages and attorneys’ fees. This entitles Alma to a cancellation of the remaining PACE taxes and will allow the Financial Elder Abuse claim to move forward.
As the case returns to the lower court, we remain hopeful the County will finally come to the table, cancel the fraudulent lien, repay Alma the money she should never have had to spend, and pay her additional damages for the emotional distress she has suffered.
Alma’s story is a stark reminder of how older adults can be targeted—and how crucial legal aid is in defending their rights, their homes, and their dignity.
